A unified Energy Economy

There is no master plan for the energy economy to replace fossil fuels or combat climate change. Although the government has prescribed the direction, by setting the 2050 energy target (80% reduction in CO2 emissions versus 1990 in UK) for the use of renewable energy sources and increases in efficiency, for lawmakers and industry to fulfill, the energy target is not realistic. For example, it assumes that private households will decrease their energy consumption by 95%. Although this is technically feasible, it is not affordable, because the necessary heat insulation measures would require a pulling down and rebuilding 80% of all dwellings. (See Note 1) Nor is it realised that if renewable electricity is to be used exclusively in all energy sectors, 2-3 times more electricity infrastructure must be built than is currently used - that is expensive. (See Note 5)

Therefore a unified energy economy is proposed, which is affordable, and can easily absorb fluctuating electricity feeds.

Concept

The various energy sectors, electricity, heat and mobility, will be integrated into a single concept, which supplies all sectors from a single infrastructure and a single energy carrier. Hydrogen is the best suited energy carrier, because it is producible with low loss, is able can be inexpensively distributed to end users, where it will be converted to the desired type of energy with simple, cheap fuel cells. The concept is illustrated below.

A sustainable hydrogen economy

As this figure shows, filling stations and end users will obtain their hydrogen from regional hydrogen factories. Instead of co-generation by heat engines, there will be fuel cells at end users which can instantly respond to changing demand.  The electricity grid will therefore be no longer needed. A fuel cell costing less than 50 Euros per installed kW will be so inexpensive , that a it will not be worth investing in a separate boiler.

In contrast to electricity as an energy carrier, hydrogen does not have to be produced at just the right moment. The gas reservoirs present in the natural gas network can buffer a complete absence energy from sun, wind and sea for weeks, and the biomass in forests and fields for years. This buffering is not only valid for electricity, but also for heat and transport.  Therefore hot standby power stations to provide spinning reserve are not needed in this concept.

Unlike the large and complex control system of the power grid whose software is vulnerable to attack, the control system for hydrogen distribution is relatively simple.

A heat-constrained energy economy

Between 50-60% of the energy bound chemically to hydrogen is converted to electricity when using fuel cells. Compare that to a typical household where electricity accounts for only 17% of the primary energy it requires when power station losses are included, and the electrical power it actually receives is only 25% of the total energy it uses.  A hydrogen economy with fuel cells could double this electrical power.  A hydrogen economy is therefore an energy economy in which large proportions of electricity can be converted into heat. This can be done loss-free by simple resistive heating(Even more heat could be delivered by the use of heat pumps.)  When there is an electricity surplus in the system, engineers speak of a heat-led (or heat-constrained) energy economy, which because of the way units of energy are defined in terms of heat (Note 3), is in principle lossless.

Hydrogen Production

Using industrially available methods, there are two basic ways to use energy to produce hydrogen:

  1. Energy harvested as electricity (wind and photovoltaic) can be converted into hydrogen by electrolysis
  2. Carbon containing fuels such as biomass can be converted into hydrogen via thermochemical gasification.

In order to evaluate the concept it is assumed that 70% of the hydrogen comes from biomass and electrical renewable energy makes a 30% contribution. That is double the electrical renewable energy in Germany today (2013).

The details of hydrogen production and its usable potential are covered later.

Distribution of hydrogen

The investment costs for these processes are around 200 €/kW, which is an order of magnitude lower than the cost of a power station.

Hydrogen can be transported loss-free in the regional natural gas pipe network. The cavern gas reservoirs can also be used. The technical principles for the transition of the natural gas network to hydrogen are detailed in another section.

Use of hydrogen

Hydrogen can in principle also be converted into electricity using gas engines and turbines. However, costs, efficiency and inertia weigh against their decentralised use in households. Simple membrane fuel cells (PEMFC) as also used in cars will fulfill the requirements much better in terms of price, response time and low cost maintenance.

The graph to the left shows the rough specific investment costs for generators of electricity. Only the last three are really for decentralised electricity production on a household scale. Small gas engines of a few kW power have been introduced. Both residential steam reformers with fuel cells, and high temperature fuel cells (SOFC) which work using natural gas, are in the early stages of their development. There are around 350 of these devices installed in Germany - around 100,000 in Japan (August 2014).

Developers of fuel cells for the natural gas network have named a target of 10,000 €/kW. In the medium term, costs are expected to be halved. All these generators of electricity rely on the power grid because they do not sufficiently fulfill the dynamic load requirements of a household.

A PEMFC fuel cell (as used in cars) behaves very differently in a piped hydrogen network. This type can immediately follow load demands and therefore requires no national grid. This investment cost of 20-50 €/kW is so low that its bar in the graph is not noticeable.

Specific investment costs for power generation plants

The low investment  costs envisaged for a PEMFC fuel cell are not possible with any other type of electricity generator. As a PEMFC can be made arbitrarily small without losing its major properties, this type of fuel cell is ideal for a decentralised co-generation of heat and power (CHP). In this way an expensive heat distribution network under the streets is avoided. The temperature level of a PEMFC is between  60°C and 180°C depending on the membrane - the most widely used types operate at around 80°C.

A fuel cell (PEMFC) of 5 kWel (10kW total output) as an electricity generating heater will be cheaper than a natural gas boiler. In addition it will be able to be overloaded for a short time at several times its rated power, and this can also be used to stabilise the power grid.

One advantage of the high efficiency of fuel cells is that the energy demand for electricity and domestic hot water is about the same. Therefore in a domestic application no energy need be lost. However, a small hot water storage tank (40-200 litres) is recommended. Details can be found here.

The figure to the left compares the distribution infrastructure for 600MW of energy as electricity and as gas. A high tension power line is shown along with a barely visible hydrogen pipeline in the base of the power line. This comparison can also be expressed in terms of cost:

  • Electricity distribution from  power station to the home: around 11 cent / kWh without tax or levies (federal grid agency, 2013)
  • hydrogen distribution from a hydrogen factory to a home: roughly 1 cent /  kWh (some gas suppliers < 0.3 cent / kWh)

Assuming a price of 3 cents / kWh for hydrogen produced from biomass, this indicates a price for domestic energy (half heat / half power) of around 4 cents / kWh.

Power stations which typically produce electricity for 4 cents / kWh (EEX price, 2012)
therefore have to charge 4 + 11 = 15 cents / kWh for domestic electricity - before tax and levies.

See Note 4 for comparison with UK

In contrast to a power line, a hydrogen gas main can deliver energy for  electricity, heat and transport. That is multiple use.

 

The secret for the success of a hydrogen economy is in essence explained by:

  • fuel cells, produced in quantity promise to be cheap and efficient electricity converters,
  • a continuous co-generation of heat and power at end users,
  • an inexpensive distribution of energy using a pipeline network,
  • use of a single energy carrier for all sectors.
  • a low loss energy chain from primary to delivered energy

Thats all you need

In a hydrogen economy the electricity grid is no longer necessary. One simply sets the thermostat to comfortable just as before. As electricity is a by-product in a heat constrained energy economy, the electricity meter is redundant. It is only necessary to pay a gas bill, not an electricity bill which is anticipated to be no higher than today.

The end user needs neither smart appliances, nor a connection to a smart electricity grid. Nor are electricity storage or hot standby power stations necessary. There would be no way for hackers to interfere with or manipulate the energy production.  There is no obvious way to charge for self-generated electricity because there is no connection to the power grid. (compare EEG2014 § 61 (2) Ziff. 2)

K-H last updated: 6.08.2014

COMMENTS

Note 1:  More heat needed than power.
     An approximate cost of making the huge reduction in the energy assumed by policy makers is likely to be at least of £30,000 per house in Britain where the existing housing stock is approximately 30 million.  When multiplied together the cost of this assumption amounts to roughly £1 trillion, and that does not include domestic hot water.  See also the CHP page for more about space heating.
     Even in summer a home requires roughly the same amount of energy to provide domestic hot water as it consumes as electricity.
     The K-H concept recognises that the energy economy is heat rather than power constrained.  Even at times when air-conditioning is necessary it is easy to show that running it from fuel cells is more efficient than from thermal or nuclear power stations.

Note 2:  A clear vision for a sustainable energy economy
    
Other approaches take a mix of technologies in incremental steps with no clear vision for a final infrastructure, but this concept offers a clear picture for a final efficient and cost effective infrastructure.

     It demonstrates a hydrogen economy in its purest form.   It is also far simpler and potentially far lower cost than current energy and infrastructure or extending the current infrastructure.  Almost the whole gross (HHV) primary energy is put to use as heat and power.  The end user can use the heat for domestic hot water and space heating, and can use the power either as power or, through resistive heating, as additional heat.  Transmission losses are almost zero compared to 7% or more for electricity.  The losses in converting primary energy (biomass or renewable electricity) to hydrogen are much lower than converting biomass to electricity.
     Experts have calculated the learning curve for the price of fuel cells and shown that in volume their price would be less than a modern condensing boiler.  No boiler would be needed. The electricity grid is far more expensive to build and maintain than delivery of energy  in gas pipes.  The electricity grid is not even needed.
     The conversion of fuel to hydrogen is also much more efficient and also less costly than to electricity.  Indeed, an Integrated gas combined cycle (IGCC) power station with carbon capture and storage consists of a gas fired power station running on hydrogen from a preceding gasifier producing hydrogen from a hydrocarbon fuel.  When biomass is used instead of a fossil fuel this process becomes carbon negative reversing climate change.  Only this first hydrogen production stage is needed.  The gas fired power station becomes redundant.  There are therefore great overall improvements in both cost and efficiency compared to current practice.

The concept could be improved in some ways, but this would introduce some extra costs.  For example:
*   a user might use a heat pump to provide more heat than from simple resistive heating
*   a few neighbouring premises might be electrically connected to improve continuity and diversity, for example during servicing.
*   a user might add solar panels (PV or thermal or both)

The concept has a few weaknesses:
*    The energy that can be stored in the natural gas infrastructure is much less for hydrogen than for natural gas, though biomass can be stockpiled as an additional store of energy
*    Biomass will have to be not only collected, but also transported to the regional hydrogen factories
*    Electricity from wind, sea and sun is better carried to end users as electricity than converted to hydrogen.  Even with efficient electrolysis only half the original electrical energy is recoverable as electricity.  Therefore electrolysis is only justified when electricity is in surplus.
*    The bigger question is whether investment in renewables is wise or necessary when K-H shows that energy from biomass in a hydrogen economy would be far cheaper and just as sustainable. 

Note 3  (Heat and its units)
     The use of mechanical measures of energy are now commonly used for heat.  These measures are joules (J) and huge Exajoules EJ (10^18 Joules), and kilowatt-hours (kWh) and huge Gigawatt-hours.  These are ultimately defined in terms of our absolute standards of length, mass and time.  Energy is interchangeable between these forms:  mechanical, electrical and radiation, with no loss except for friction, resistance and the dissipation of radiation (e.g. solar radiation) in which case the loss of energy in these forms becomes heat energy which raises temperature.  All forms of energy can therefore be measured in Joules or kWh by comparing their heating value.  The second law of thermodynamics however states that it is much more difficult to recover these other forms of energy from heat.
     Chemical reactions either release heat (exothermic) or absorb heat (endothermic).  A chemical engineer tries to minimise the external heat he requires and put any excess heat to good use.  Although he thinks in terms of heat energy he measures it in Joules or kWh .  He will try to minimise the escape of heat into the environment.

Note 4:  UK energy & distribution costs
     Electrical engineers would say that the picture of 600 MW gas versus electricity transmission is unfair because the second law of thermodynamics clearly shows that energy in in electrical form is more valuable.  K-H however argues that since we live in a heat constrained economy both forms have equal value.  Then his picture is valid.  His costs, which are 2012 German figures, then strengthen his argument.

     The retail bill from my UK supplier of gas and electricity (in 2015) shows that for an average UK house the costs of delivery (regulated by Ofgem) are 1.0 p/kWh for gas and 3.4 p/kWh for electricity.  The cost for gas is very similar to the 1 cent cost in Germany, but the cost for electricity in UK is much lower than 11 cent cost in Germany.  All figures exclude tax, profit and environmental levies, etc.  (In a private conversation with a long experienced UK gas engineer I was told that historically electricity costs seven times as much as gas to distribute.  Taking account of currency difference this would come closer to the K-H figure of 11 cents.)  I am never confident in the validity of such figures.  For instance, accountants and tax authorities can apply varying rates of depreciation to the cost of infrastructure.
     My retail bill also shows the UK wholesale costs of gas are 2.1 p/kWh and 5.8 p/kWh for electricity.  For Germany in 2012 K-H quotes:  3 cent/kWh for natural gas (see
H2-Production) and 4 cent/kWh for electricity.
     The low cost of natural gas in UK makes it more economic to produce hydrogen from natural gas than from biomass.  This low price of natural gas in the UK is due to the plentiful supply it has enjoyed from the North Sea.  Those supplies however are now declining and the UK is having to import natural gas.  It is also anxious to develop fracking as a source of gas.  The UK will therefore be forced to pay world market prices as does Germany.  The drop in oil and gas prices 2014-15 is unlikely to be permanent.  Nor can any of these sources of fossil gas be carbon neutral (or carbon negative with carbon capture).

Note 5:  All-Electric versus Hydrogen Economy
     Policy makers and public alike tend to think in terms of an all-electric future, but opinions vary as to how much more electricity infrastructure will be necessary.  Some argue that with greater efficiency in its use such as heat pumps, LED lighting, passivhaus buildings, and electric transport that less might be required and the old gas infrastructure dismantled.
     K-H however points out that currently only 17% of the primary energy used by a home is for power.  Therefore nearly six times as much primary energy is needed for heat than power.  Similar considerations apply to other buildings, etc.  Even transport needs heat and light for example:  An electric train needs as much power to provide comfort as to propel it and the range of battery powered cars nearly halves in city driving in winter.  From these figures it seems likely that K-H is right.
     There is a second weakness in assuming an all-electric future from sun, sea and wind can be economical.  Onshore wind typically produces only about 22% of its design power over a year, and offshore about 43%.  These imply that the wind capacity that would have to be installed would have to be 2.5 to 4.5 times the nameplate capacity.  It is for these reasons that policy makers justify nuclear capacity.  All these require a further source of on-demand electricity from fuels or pumped storage.  Besides these primary energy sources all must be interconnected at far greater expense than for gas which already reaches 83% of British households.